Slovakia's unemployment rate is expected to increase in the near future, according to Matej Hornak, an analyst at Slovenska Sporitelna, in response to the 2Q23 labor market figures released by the Statistical Office. The data indicated that the unemployment rate, measured as the proportion of unemployed individuals in the economically active population, stood at 5.7 percent in the second quarter of this year, a 0.4 percentage point decrease compared to the previous year. However, Hornak pointed out that in a rising inflation environment, employees will likely demand higher wage growth to maintain their purchasing power and standard of living. The persistent shortage of skilled labor and low unemployment rates are additional factors in favor of employees during salary negotiations. As a result, it is anticipated that average nominal salary growth may reach around 10 percent this year, but companies may face challenges due to increasing costs.
Source: TASR
